Wedbush cuts PT for FireEye Inc (NASDAQ:FEYE) to $41 from $63

Wedbush has cut its 12-month price target on FireEye Inc (NASDAQ:FEYE) to $41 from $63. The major reason for the price cut is that Wedbush believes that competition is increasing against FireEye. Nevertheless, while competition is real, the firm also believes that investors are overreacting to the perceived threats or competition. According to Wedbush, FireEye Inc (NASDAQ:FEYE) is still viewed as superior network security provider and the company’s marketing efforts are also bearing fruits.

For 3Q2015, Wedbush expects FireEye to post revenue of $168 million and a loss of $0.44 a share. That compares with the consensus estimate of revenue of $167 million and a loss of $0.45. The reason Wedbush seems to expect better results from FireEye’s 3Q than Wall Street is that it believes the consensus estimate is conservative. Wedbush has an Outperform rating on FireEye Inc (NASDAQ:FEYE).

On a consensus basis, Wall Street sell-side analysts have a mean target price of $52.235 for FireEye, Inc. (NASDAQ:FEYE). This number is based on the mean estimate from the 17 research firms that recently issued reports on the company.

According to analysts, FireEye, Inc. (NASDAQ:FEYE) is expected to report earnings per share for the current fiscal quarter of $-0.9. This is the consensus mean estimate based on the individual covering sell-side analysts’ reported numbers. The company last reported earnings for the period ending on 2015-06-30 of $-0.78.

The average broker recommendation is arithmetical average of the individual ratings contributed by sell-side analysts to produce a Consensus Analyst Rating for each stock. On a scale of 1 to 5 where 1 is a Strong Buy and 5 is a Strong Sell, has the stock is ranked 1.96 based on 17 sell-side broker recommendations. Of the 17 analyst estimates, the most bullish sees the stock reaching $65 within the next 12 months while the most bearish analyst sees the stock at $34 within the year.

In looking at the long term growth prospects of the company, sell-side analysts have a consensus mean earnings per share estimate for the current year of $-3.4. The high end estimate for this time frame is $-3.16 with the low being $-3.74. In looking at the next three to five years, the long term earnings per share estimate growth rate for the company is 16%, based on 2 analysts providing projections.

FireEye, Inc. invented a purpose-built, virtual machine-based security platform that provides real-time protection to enterprises and governments worldwide against the next generation of cyber attacks. Its technology approach represents a paradigm shift from how information technology (IT) security has been conducted since the earliest days of the information technology industry. The FireEye platform provides real-time, dynamic threat protection without the use of signatures to protect an organization across the primary threat vectors, including Web, email, and files and across the different stages of an attack life cycle. The core of its purpose-built, virtual machine-based security platform is its virtual execution (MVX), engine, which identifies and protects against known and unknown threats that existing signature-based technologies are unable to detect.

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